1. Final Rule (2011)Draft Regulation (2013) Applicable students Title IV & non-Title IVTitle IV only Accountability Metrics annual DTE discretionary DTE annual DTE discretionary DTE Passing aDTE ≤ 12% OR dDTE ≤ 30%aDTE ≤ 8% OR dDTE ≤ 20% Zone No equivalent provision Not passing & 8% < aDTE ≤ 12% OR 20% < dDTE ≤ 30% Failing aDTE > 12% & dDTE > 30% Ineligibility rules T4 ineligible for 3yrs if 3 fails out of 4 yrsT4 ineligible for 3yrs if: 2 fail out of 3yrs OR Not passing in any 1 out of 4yrs (time limit for zone programs) Zone consequences No equivalent provisionDebt warnings to students if program could become ineligible at the end of the yr Fail consequences After 1 st & 2 nd fail: Debt warnings to students After 1 st fail: Debt warnings to students T4 enrollment limited to previous yr level New programs All new programs notify, the Department decides whether to formally approve For discussion at negotiations 1 2011 Final Rule (without repayment rate) vs. 2013 Draft Regulation DRAFT FOR DISCUSSION PURPOSES – 08/29/2013

2. Final Rule (2011)Draft Regulation (2013) Min Program Size 30 completers10 completers Debt amortization schedule for DTE calculation Debt amortized over 10, 15 and 20 years for certificate/associate’s, bachelors and graduate programs respectively Debt amortized over 10 years for all credential/degree levels Tuition & fees cap in DTE calculation Median debt capped at program tuition and fees (if reported by institution) No tuition and fees cap for median debt 2 DRAFT FOR DISCUSSION PUROSES – 08/29/2013 2011 Final Rule (without repayment rate) vs. 2013 Draft Regulation, cont.

3. Final Rule (2011)Draft Regulation (2013) Students excluded from DTE calculation Loans in military deferment status (no min time requirement) Loan discharged for disability Enrolled at an eligible institution (no time min time requirement) Student died Loans in military deferment status for at least 60 days Loan discharged for disability Enrolled on at least half-time basis at an eligible institution for at least 60 days Student died Completed a higher credentialed GE program at the institution Alternate earnings challenge for DTE calculation For failing program, institution may submit alternate earnings information using: Data from survey conducted by institution in accordance with NCES standards State earnings data For failing program, institution may submit alternate earnings information using: Data from survey conducted by institution in accordance with NCES standards Alternate DTE calculation in first 3yrs In first 3yrs of rule, alternate DTE calculation may be applied that uses BLS data for earnings In first 3yrs of rule, alternate DTE calculation may be applied that uses the median loan debt of students completing in the most recent year (decouples debt and earnings) Cap of ineligible programs in first year of rule For each institutional category (public, private non-profit, proprietary), ineligible programs capped at number accounting for 5% of that year’s completers No equivalent provision 3 DRAFT FOR DISCUSSION PURPOSES – 08/29/2013 2011 Final Rule (without repayment rate) vs. 2013 Draft Regulation, cont.

4. Final Rule (2011)Draft Regulation (2013) Disclosures Occupation Cost of tuition, fees, books, supplies, room & board On-time completion rate Placement rate Median loan debt Repayment rate (dollar-based) Calculation adjusted to account for loans in negative amortization Occupation Cost of tuition, fees, books, supplies Completion rate (100 & 150% of program time) Placement rate Median loan debt Repayment rate (borrower-based) Generally, payment of $1 of principal over course of year counts as positive repayment, but for loans in negative amortization, full payments must be made for entire year Median earnings Whether program meets requirements for licensure (if applicable) Reporting For each student: Student identifiers linked to institution Name and CIP code of program Date of completion Private and institutional loan amounts Whether student matriculated to higher credential program Total number of students enrolled in each program at institution and identifying information Explanation for any missing data For each student: Student identifiers linked to institution Name, CIP code, credential level, and normal time of program Date of completion or withdrawal Private and institutional loan amounts Date of initial attendance Attendance dates and enrollment status during the award year Explanation for any missing data 4 DRAFT FOR DISCUSSION PURPOSES – 08/29/2013 2011 Final Rule (without repayment rate) vs. 2013 Draft Regulation, cont.